Musk and Trump have fallen out. What is the reason behind this century-long feud? Will it affect the encryption market?

Deng Tong, Golden Finance

In November 2024, Musk was featured in Time magazine, and on the road to a treacherous election, Musk once called for wind and rain in the American political arena - presiding over rallies, guiding government appointments, and setting the agenda for the next president of the United States. Time once said of Musk: "Standing next to him, even Trump seems almost in awe, not so much a boss as a companion, because the planet and its challenges are not big enough for him." ”**

For details, you can check the article on Jinse Finance: "Time Magazine: How Elon Musk Became the 'King Maker' Step by Step?"

However, the two only spent a little over 100 days in the honeymoon period, and shortly after Musk left DOGE, they suddenly fell out.

For details, see the article on Golden Finance: "Musk is about to leave his unfulfilled DOGE ambitions"

What caused the two people to become enemies? How did the verbal battle between these two prominent figures escalate? How does the outside world view this century's verbal battle? Will Musk return to the White House? Is Tesla facing a major crisis? What impact does this have on the crypto market?

1. Timeline of the escalation of the scolding war between the world's richest man and the super king

The dispute began last week, stemming from Trump's "big and beautiful" bill. It started to heat up on Wednesday local time and reached a boiling point on Thursday afternoon in the Oval Office. The following content is a timeline outlining the escalating arguments between Musk and Trump, as reported by Golden Finance.

Wednesday, May 28: In an interview with CBS News, Musk criticized Trump's new tax and spending plan, stating that the legislation left him "disappointed." Trump later admitted to reporters that he was "not happy with certain aspects" of the plan, but was also "excited" about some elements like tax cuts. At the time, Trump did not directly comment on Musk's remarks.

Thursday, May 29: Musk announced that he would leave the Trump administration after his term as a special government employee ends. At this time, the relationship between the two was still very harmonious, and Trump even publicly stated, "He will always be with us, Elon is great!"

Friday, May 30: Musk appeared at the White House press conference, where Trump praised him highly. Trump stated that Musk "hasn't really left" and will continue to "come and go" from the White House.

Monday, June 2: Trump defended his "grand and beautiful legislation" in an article on the "Truth Social" website, claiming there are "many false statements" regarding his landmark economic policies.

Tuesday, June 3:** Musk criticized Trump's proposed bill again in a post on X, calling it "massive, outrageous" and containing "disgusting ugly behavior."**

This marks a sudden escalation in the verbal battle between the two.

Wednesday, June 4: Musk calls for the formulation of a new spending bill that "will not significantly increase the (U.S. government budget) deficit and raise the debt ceiling." Musk urges his followers to call on their representatives to oppose Trump's bill.

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Thursday, June 5: Musk referenced a series of old posts by Trump from 2012 and 2013 on X, where Trump criticized government spending.

During a speech with German Chancellor Friedrich Merz in the Oval Office, Trump stated that he and Musk "once" had a good relationship, but "I don't know if we will maintain that relationship again." He also mentioned that Musk was "unhappy" with his plan to cut electric vehicle subsidies in the bill, as this would affect the billionaire's Tesla and SpaceX businesses.

Musk responded in real-time from the Oval Office, refuting Trump's remarks.

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Thursday, June 5 12:24: After returning to the White House, Trump told reporters that Musk understood "all aspects of the bill" and expressed that he was "very disappointed in Musk."

12:25: "Fake," Musk replied on X. "I have never seen this bill, and it was passed quickly in the middle of the night, with hardly anyone in Congress reading it!"

12:44: Musk reposted Trump's old post on X, highlighting those moments when the president criticized the U.S. budget deficit. "Where is this guy today??"

12:46: Musk stated in response to another user on X, "Without me, Trump would lose the election." He then added, "What an ingrate."

13:44: Musk continues to claim on X that the "Big Ugly Bill will increase the deficit to $2.5 trillion."

13:49: Musk referenced an old post by Trump about government spending on X. He asked, "Where is the person who wrote these words? Has he been replaced by a stand-in?!"

13:57: Musk asked in a poll on X: "Is it time to create a new political party in the U.S. that truly represents the middle 80%?"

14:37: Trump began posting on his "Truth Social" platform, stating that Musk is "exhausted", so he asked him to leave the White House, and claimed that Musk is "crazy".

Musk responds: This is an "obvious lie."

Trump continued in another article, "The easiest way to save money in our budget is to terminate Musk's government subsidies and contracts."

15:10: Musk claimed without providing evidence that Trump appears in the "Epstein files." "It's time to detonate the real bomb, President Trump is in the documents of the Epstein case. This is the real reason the documents have not been made public."

16:06: Trump posted saying he doesn't mind "Elon betraying me" and will continue to defend his bill.

16:09: In response to suggestions that Trump might terminate government contracts with Musk's company, Musk stated that he would "immediately" retire the Dragon spacecraft—a spacecraft capable of traveling to the International Space Station.

16:11: Musk seems to support the impeachment of Trump, while citing a conspiracy theorist who shared Epstein's files regarding the president's statements.

16:26: Musk posted attacking another signature policy of Trump - trade tariffs, stating that these policies "will lead to an economic recession in the second half of this year."

21:27: Elon Musk's attitude seems to have softened, replying to another Trump supporter, billionaire Bill Ackman, on X with "You are not wrong," the latter calling for both to "achieve peace for the sake of our great nation."

Friday, June 6:** In an interview with ABC News, Trump described Musk as "a man who has lost his mind" and stated that he is "not particularly" interested in talking to Musk.**

Earlier reports suggested that Trump and the tech billionaire would have a phone call later, but the White House told the BBC that Trump does not plan to speak with him today.

BBC's American partner Columbia Broadcasting System (CBS) also reported that Trump is considering selling his Tesla car — the car he purchased to help Musk promote the company.

Saturday, June 7: Musk posted a tweet on X about "The America Party" and quoted another tweet from before: The people have spoken, America needs a new party to represent the 80% of the middle class. Coincidentally, 80% of people agree, that is destiny.

According to official data, Polymarket predicts a 16% chance that "Musk will create a new political party this year" and a 5% chance that "Musk will create a new political party before the end of June."

II. How does the outside world view this century-long feud?

Musk's father, Errol Musk, admitted in an interview with Russian media that his son Elon's public quarrel with Trump was a mistake, and Errol said that "it's just a small thing that will end tomorrow", he explained: "Both sides have endured five months of high pressure and need to take a breath." They are extremely tired and stressed in their efforts to remove the opposition and try to restore order in the country, so something like this can be expected." In addition, Errol made it clear: "Trump is going to win, he's going to be president-elect, so I think Elon made a mistake." **

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Navarro, a trade adviser to US President Donald Trump, believes that Trump's public feud with Musk is irrelevant, saying that Musk is just "a special government employee who will leave when it expires." Navarro said: "People in the White House come and go. Navarro also criticized Musk's long-standing opposition to tariffs, which are at the heart of Trump's trade policy. Musk doesn't like tariffs, that's all," he said, adding that Musk has "made it clear" since Trump's first term. "We can have disagreements on this issue, but I just want to say that in my first term, all the people who said that tariffs would cause a recession and inflation were clearly very wrong," Navarro said. ”

After Musk's public quarrel with Trump, Dmitry Novikov, the first deputy chairman of the Russian State Duma for international affairs, said that Russia could offer political asylum to Musk. "If he does (need asylum), of course, Russia can provide it". Kremlin spokesman Dmitry Peskov said earlier in a call with reporters that the dispute is an internal affair of the United States and that the Kremlin is confident that Trump "will handle the situation himself."

Agence France-Presse reported on June 6 that a spokesman for the European Commission quipped that Elon Musk was "very popular" in Europe. Earlier, the billionaire unexpectedly had a public dispute with US President Donald Trump. European Commission spokeswoman Paula Pinho was asked at a daily press conference whether Musk had approached the EU to discuss relocating his business or setting up a new one. She smiled and replied: "He was very welcome. ”**

3. Will Musk return to the White House?

From the current attitudes of both sides, the likelihood of Musk returning to the White House during Trump's term is not very high.

On Saturday, Trump stated in an interview with NBC News that his relationship with Musk is over. "Yes, I think so," he replied when asked if he would like to repair the damaged relationship, saying 'no'.

Vice President JD Vance stated that Musk has "completely lost his mind" and may never be popular again.

Vance pointed out that it is a "big mistake" for Tesla and SpaceX CEO to attack the president.

During an NBC News interview on Saturday, Trump stated that Musk "disrespects the office of the presidency." "I think it's a very bad thing because he has a lot of disrespect for people. You cannot disrespect the office of the president."

Last year, Musk donated about $250 million to Trump's presidential campaign. However, he hinted in a social media spat that he might support some of Trump's opponents in next year's midterm elections—providing support to challengers of lawmakers who supported Trump's tax bill.

When asked about the prospects of a Democratic candidate competing against the Republican Party with Musk's support, Trump stated that he would face "serious consequences."

Musk wrote on X: "Trump has 3.5 years left in his presidency, but I have over 40 years."

4. Is Tesla facing a major crisis?

Due to the escalating verbal battle between the two, Tesla's stock price plummeted by 14% on June 5, and then slowly rebounded.

In April this year, Tesla announced a 20% decline in vehicle sales in the first quarter, with profits plummeting over 70%, and stock prices also falling. Aside from the less than ideal operating state of Tesla due to the distraction caused by entering the White House, Tesla may also have other fundamental issues.

First, it seems to be lagging behind in autonomous driving:

Senior technology journalist Kara Swisher (Kara Swisher) pointed out: "Tesla is a great car company. They can compete in the autonomous taxi space, but they are far behind."

For a long time, Tesla has been trying to catch up with its competitor Waymo, which is owned by Google's parent company Alphabet. Its autonomous taxis have been operating on the streets of San Francisco for years and are now operating in more cities.

Secondly, unable to focus on car manufacturing:

Ross Gerber, president and CEO of Gerber Kawasaki Wealth and Investment Management, stated: "When he focuses on something, he is a very powerful person." ** "Previously, he had to prove to the world that he could build electric cars — a technology that others could not achieve. Now, he has to prove that he can build rockets. He has a lot to prove." "But he believes he is more powerful than the President of the United States, which might be the stupidest thing." **

Currently, SpaceX already has a prominent position in the US space and national security agencies, and after Trump's quarrel with Musk, representatives of NASA and the Pentagon called on Space X's competitors to speed up the development of alternative rockets and spacecraft. "Government officials have contacted at least three commercial space companies: Rocket Lab (Rocket Lab), Stoke Space Technologies (Stoke Space) and Blue Origin (Blue Origin), find out the status of their rockets and when they can be used for government missions. Musk previously said that the flight of the Dragon spacecraft may be stopped. This will make it impossible for NASA to get astronauts to and from the ISS. Musk later dropped the threat. However, his remarks raised concerns among NASA officials who are handing over the safety of astronauts to Space X, and the Pentagon also relies heavily on the company to launch its critical satellites.

Thirdly, the anger from the public:

Since Trump took office, protests have erupted every weekend across the country, collectively known as #TeslaTakedown. "He should not determine the fate of our democracy by gradually dismantling our government. This is wrong," protested Linda Koistinen.

#TeslaTakedown co-organizer Joan Donovan ( pointed out: "His acquisition of Twitter is to enhance his influence, so that he can impact hundreds of millions of people at any time."

5. What impact does it have on the cryptocurrency market?

On June 6, when the argument between the two reached a boiling point, DOGE, which Musk had strongly endorsed, plummeted 15% compared to its peak on June 3.

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Meme coin Trump is not spared from difficulty either. On June 6, Trump plummeted 17.5% from the peak on June 4. Trump acknowledges his official Memecoin (TRUMP) as a measure of public political sentiment. Industry insiders point out that the short-term price fluctuations of Memecoin are driven by speculation, but the long-term trend may reflect the public's expectations for Trump's political prospects.

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THE BITTER FEUD BETWEEN MUSK AND TRUMP HAS SPAWNED A MEME COIN CALLED KILL BIG BEAUTIFUL BILL, WHICH HAS A MARKET CAP OF MORE THAN $53 MILLION AS TRADERS JUMP INTO THE HYPE. HOURS AFTER MUSK PUBLICLY SLAMMED THE BILL, Pump.Fun TRADERS JUMPED AT THE CHANCE AND LAUNCHED A MEME COIN CALLED KILL BIG BEAUTIFUL BILL (KBBB). KBBB's market cap surged to $53.12 million in just nine hours, and traders poured in, but as of press time, the token's trading was largely silent.

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In the future, if the differences between the two further escalate, the crypto market cannot rule out the possibility of a black swan event.

Appendix: What Did Trump's "Big and Beautiful" Plan Say?

On May 22, 2025, the Republican Party in the U.S. House of Representatives narrowly passed a comprehensive tax and spending bill. The bill includes an extension of tax cuts, increased federal welfare eligibility requirements, and an increase in the national debt ceiling.

This bill, spanning over 1,000 pages, has been submitted to the Senate, which will have the opportunity to approve or amend its provisions before it is delivered to Trump.

Here are some key points from the bill.

) Social Security Tax Exempt

During the campaign, Trump proposed to eliminate the Social Security income tax – that is, the benefits paid monthly to the disabled and the elderly.

The House bill failed to deliver on that promise, but did temporarily increase the standard deduction to $4,000 for individuals age 65 and older. This deduction will be valid from 2025 to 2028.

For married taxpayers filing jointly, the deduction limit begins to phase out after $150,000, while for individual filers, it begins to phase out after $75,000.

More medical assistance requirements

To help fund tax cuts in other areas, the Republican Party has added additional restrictions and requirements to the Medicaid program, which millions of seniors, disabled individuals, and low-income Americans rely on for healthcare.

Changes to the Medicaid program (one of the largest components of federal spending) are a major source of political conflict, leading to significant differences among legislators.

One change is that new work requirements have been imposed on childless adults without disabilities. The bill stipulates that to be eligible, they must work at least 80 hours per month starting from December 2026.

Another change to the program is that the re-registration requirement has changed from once a year to once every six months. Registrants must also provide additional proof of income and residence.

Raise the salt tax cap

The bill increases the deduction limit for state and local taxes (salt taxes), which is a very important issue for some Republican holdouts in Democratic-controlled urban areas.

Currently, the maximum amount that taxpayers can deduct from their federal taxes is $10,000. This limit will expire this year.

In the new bill, House Republicans raised the salt tax limit for married couples with an income of no more than $500,000 to $40,000.

This is also a major point of contention.

A law passed by the Trump administration in 2017 set a limit of $10,000, aimed at freeing up space in the federal budget to allow for tax cuts elsewhere.

Snap Benefits

The government program that provides supplemental nutrition assistance to over 40 million low-income Americans, ###Snap(, has also been reformed.

The new law requires states to invest more funds into the program, which is also partially funded by the federal government.

It also adds work requirements for sound Snap registrants without dependents.

) Overtime pay, tips, and other expenses are not taxable

The bill fulfills one of Trump's signature campaign promises - to eliminate taxes on tips and overtime pay. Both commitments have been successfully incorporated into the bill.

The plan will also allow Americans to deduct the interest on auto loans for cars made in the United States only.

By 2028, the child tax credit will increase from $2,000 to $2,500.

In addition, the bill also proposes to raise the debt ceiling to $40 trillion (£29 trillion). The debt ceiling refers to the limit on the amount of money the government can borrow to pay off its debts.

Raising the debt ceiling enables the government to pay for projects already approved by Congress.

Sources: Jinse Finance, BBC, Jin10 Data, X, Sina Finance, Yahoo Finance, CoinGecko